Indicate why the remaining items are not included in the calculation.

Item

Reason

Reserve for doubtful debts

This is deductible as a normal cost of doing business.

Loss from theft

This relates to the business and is a reasonable amount, so it is fully deductible.

Cost of sponsoring local hockey team

This is deductible under ITA $20(1)($m$).$

Mortgage interest

This would have been included in business income had the contract been fulfilled.

Damages

This would be deductible as the building is capital property used in the business.

Fees paid to son